MC Mining Arranges US$8 Million Bridge Loan Plus US$16 Million Share Subscription from Kinetic Development Group

Immediate Capital Injection via Bridge Loan

MC Mining Limited (ASX:MCM) has secured a critical US$8 million unsecured bridge loan from its controlling shareholder, Kinetic Development Group (KDG), providing the company with immediate access to working capital. This facility, carrying interest at the Australian Reserve Bank rate plus a 3% margin, is structured to be repaid or set off against the first tranche of a subsequent share subscription.

The bridge loan’s drawdown is contingent on KDG receiving voting intention statements from shareholders holding at least 25% of the company’s issued capital, and completion of related corporate formalities. If these conditions are unmet by 16 August 2026, KDG may terminate the loan agreement.

US$16 Million Share Subscription in Two Tranches

Alongside the bridge loan, KDG has committed to a US$16 million share subscription, to be executed in two equal tranches of US$8 million each at an issue price of US$0.2089 per share. The first tranche will effectively convert the outstanding bridge loan principal into equity, with KDG paying the second tranche in cash upon meeting further conditions.

Importantly, the share subscription requires shareholder approval due to KDG’s status as a related party and the resulting increase in its voting power beyond statutory limits. The company plans to convene a shareholder meeting within 90 days of the loan drawdown to seek these approvals, with KDG and its associates excluded from voting on the resolutions. An independent expert’s report will accompany the notice of meeting to assist shareholders’ decision-making.

Funding to Drive Makhado Project and Operations

The proceeds from the bridge loan and the second tranche of the share subscription will be directed towards the company’s business operations and working capital needs, including the ongoing development and commissioning of the Makhado Project. This hard coking coal project is central to MC Mining’s growth strategy, with the funding intended to sustain operations and support project milestones.

This new funding package is distinct from the company’s prior convertible loan note programme, under which it secured approximately US$9.94 million earlier this year from KDG and other investors. The fresh capital injection underscores KDG’s continued financial backing as MC Mining transitions from development to production phases.

Regulatory and Shareholder Approval Challenges Ahead

The transaction triggers multiple regulatory requirements, including compliance with Australian Corporations Act provisions and ASX Listing Rules relating to related party transactions and substantial shareholding limits. The need for non-associated shareholder approval introduces execution risk, as there is no guarantee the requisite votes will be secured.

The second tranche’s completion is further conditional on Makhado Project commencing production and KDG’s satisfaction with the company’s operational performance and updated business plans. This introduces an additional milestone hurdle before the full US$16 million subscription is realised.